topic 100% EOU Pricing Procedure in Application Development and Automation Discussions

100% EOU Pricing Procedure

Former Member — Tue, 09 Sep 2014 11:03:23 GMT

In 100% EOU i have to place a purchase order to a vendor who is local but he is procuring through Import. So we have to pay CD to him. The calculation is as follows for example,

Base price is 37180 Rs

CD of 3.75% = 1394.25 Rs on Base price and packing and forwarding.

ED of 10% =3857.43 Rs on Base price and CD

Ed.cess ED of 2% = 77.15 Rs

HEd.cess on ED of 1% = 38.57 Rs

Ed.cess CD 2% on CD = 107.35 Rs

HEd.cess on CD 1% on CD = 53.67 Rs

Sub Total = 42708.42

On all these factors VAT of 14.5% is calculated = 6193 Rs.

To achieve this what i have to do please suggest me i am not familiar with pricing. Should i have to create Tax code according to this? If so kindly tell me the procedure.

Thanks and Regards

M.Prasanna

Re: 100% EOU Pricing Procedure

Lakshmipathi — Wed, 10 Sep 2014 10:03:54 GMT

Tax code has to be created only for VAT and not for other CIN conditions. Based on the logic what you have listed out, your pricing procedurer should have each condition types assigned with respective Account Key and condition record has to be maintained in FV11. By the way, your client are into TAXINJ or TAXINN?

G. Lakshmipathi

Re: 100% EOU Pricing Procedure

Former Member — Wed, 10 Sep 2014 10:17:06 GMT

Hi sir,

Thank you for your reply. My client are into TAXINN. Actually the ED has to be calculated on Total price and CD. should i have to put ED condition type also into pricing procedure and accordingly do it ?

And also i just want to know why we should book the Bill of Entry i.e., Customs duty when the vendor would have paid already. Is it the process for 100 EOU vendors?

Thanks N Regards

M.Prasanna

Re: 100% EOU Pricing Procedure

Lakshmipathi — Wed, 10 Sep 2014 13:28:02 GMT

Yes obviously. Whatever value system has to calculate, you need to add in your pricing procedure. On your second query on Bill of Entry, please raise this query with your client who are the right person to give correct answer.

G. Lakshmipathi

Re: 100% EOU Pricing Procedure

binoy_vargis1 — Thu, 11 Sep 2014 09:13:51 GMT

Hi,

Please check with client whether CD and ED applicable for same scenario. If so what are the components which are eligible for cenvat credit.

Regards

Binoy

Re: 100% EOU Pricing Procedure

Former Member — Thu, 11 Sep 2014 11:30:04 GMT

Hi,

Thank you for your reply. CENVAT credit is applicable only on ED. CD will go to material value.

Regards

M.Prasanna

Re: 100% EOU Pricing Procedure

binoy_vargis1 — Fri, 12 Sep 2014 09:58:31 GMT

Hi,

In that case you can opt for either of these two options.

1) You can add CD to Base price. You can use the Taxcode for ED.

2) You can add seperate condition types in PO for which you can give account key NVV so that it will be inventorised. You can make a new taxcode for this and give condition values in FV11.

Regards

Binoy

Re: 100% EOU Pricing Procedure

binoy_vargis1 — Thu, 18 Sep 2014 06:38:18 GMT

Hi,

Have you solved your issue.

Regards

Binoy